The Government’s decision to increase rents of whānau in social housing to offset the cost of increasing accommodation supplements to those in private rentals, is just squeezing the poorest households to line the pockets of the landlords of those private rentals, the Better Taxes for a Better Future Campaign has pointed out.
“It’s astounding that the Government has chosen to take from whānau already struggling with the cost of putting food on the table to address the needs of others in the same boat. If the Government taxed the capital gains of landlords currently reaping the benefit of accommodation supplements it could easily afford the cost of increasing the supplement – just $374.3m – and also build much needed social housing,” said Kate Stone, Better Taxes for a Better Future campaign manager and spokesperson.
“In reality, it is landlords who have “won the lotto” for many years now. And there is a real risk that any increase to the accommodation supplement will just be reflected in landlords increasing rents, defeating the purpose of the move and increasing the cost to the public of providing housing support to the most vulnerable in our communities.”
“It is quite clear who the Government is backing, and it isn’t ordinary families trying to make ends meet in a cost of living and fuel crisis. Let’s not forget this Government already granted tax cuts to landlords costing an estimated $2.9b over 4 years, when it restored 100% tax deductibility in 2024,” said Stone.
“Rather than reducing the incomes of those who are struggling most by increasing their income-related rents by 20%, we should be ensuring the wealthiest and big corporates are paying their fair share of tax, so that everyone in Aotearoa New Zealand can afford warm, healthy homes to live in.”